The Effect of Bvn in Delivering Bank in Nigeria (2005-2015)

The Effect of Bvn in Delivering Bank in Nigeria (2005-2015)


The Effect of Bvn in Delivering Bank in Nigeria (2005-2015)


Quick Navigation for Final Year Undergraduates, Masters (Thesis), and Ph.D. Dissertation Students Who Need Our Services on Their Research Works

Find More Project TopicsFIND HERE
Hire Us for Thesis WorksHIRE NOW
Hire Us for Project WorksHIRE NOW
Hire Us for Seminar WorksHIRE NOW
Hire Us for AssignmentsHIRE NOW
Hire Us for ProposalsHIRE NOW
Contact  UsHERE NOW




Chapter One of The Effect of Bvn in Delivering Bank in Nigeria (2005-2015)


Background of the study

In banking, security is paramount to protect depositors’ funds. It is in the light of this that the Central Bank of Nigeria (CBN), through the Bankers’ Committee, Deposit Money Banks and Nigeria Interbank-Settlement System (NIBSS), introduced the centralized biometric identification system, and tagged Bank Verification Number (BVN) (Ehi 2015). Therefore, going by the spate of frauds and cashless policy, the CBN in conjunction with all Nigerian banks launched the BVN project to enhance the operation of banks. The BVN became imperative following the increasing incidence of compromise on conventional security systems such as password and Personal Identification Number (PIN) of customers (Vanguard Newspaper 2015). The Bank Verification Number, BVN, is a unique identification number for all Bank Customers within the Nigerian banking industry. BVN is a biometric authentication of Each Bank customer, especially those who make electronic and cashless transfers through a unique set of digits (Daily Trust Newspaper, March 8 2016).

 The initiative is part of the overall policy of the Financial sector Strategy, FSS, to ensure that Nigeria becomes one of the twenty largest economies in the world by the year 2020 (Ehi 2015).

According to the apex bank, customers are expected to walk into a selected bank fill and submit the BVN enrolment form. Following this, such customer will present him or herself for facial and fingerprint capturing. Thereafter, an acknowledgment slip with the transaction identification will be issued to the customer whose enrolment will be confirmed and a unique BVN, generated. The customer will immediately be notified via sms with the bank verification number. This is in compliance with the directive from the Central Bank of Nigeria (CBN) that by the 30th of June 2015, all bank customers should have the BVN while as from march same  year, transactions valued at hundred million naira and above should only be allowed for customers with bank verification number. (Tribune Newspaper October 29, 2015)

The Central Bank of Nigeria considered the exercise as a key component of knows customer policy of banks. It is also a plan to eliminate fear in banks and make the country to be in league with developed countries of the world. As the Bank Verification Number enrolment closes tomorrow, it is therefore imperative for all Nigerians to ensure that they are enrolled. It is believed that if the BVN enrollment is properly managed, it will not only enhance credit advancement to bank customers, but also reduce reported cases of scam, fraud and account impersonation while at the same time  assist commercial banks in keeping authentic records of their clients.  (Ade, 2016)

Apart from these, the BVN will simplify banking operations especially inter-bank transfer, improve services and reduce unnecessary queues within banking halls.

At this junction, observers believe that there is need for the apex bank to consider extending the enrolment period in view of the large number of Nigerians who are yet to be registered.

Above all the Central Bank of Nigeria should use the various platforms to publicize the intricacies of the policy. This study therefore analyzes the effect of BVN delivery of banking service in Enugu metropolis.


The role of BVN aimed at controlling hazards associated with social security and credit risk cannot be underestimated. In recent times, biometric technologies have been used to analyze human characteristics as an enhanced form of authentication for real-time security processes. In the face of increasing incidents of compromise on our conventional security systems (password and PIN), the need for greater security on access to sensitive or personal information in the Banking system becomes inevitable (Sarah, 2014). In the same vein, the extent to which violation in the credit policies and credit monitoring system weakens the financial intermediary system continue to attract empirical and theoretical debate on how well Bank Verification system would thwart those issues of default and scam.

In addressing existing challenges with identity management, the Central Bank of Nigeria, through the banker’s committee in collaboration with all Nigerian banks in February 14, 2014 launched a centralized biometric identification system tagged “Bank Verification Number (BVN)”.

The BVN gives each Bank customer a unique identity across the Nigerian Banking industry that can be used for easy identification and verification at Point of Banking operations. Biometrics refers to identification of an individual based on physiological or behavioural attributes- fingerprint, voice, signature, facial features etc (Ehi, 2015).

Bank Verification Number (BVN) is an initiative of the Central Bank of Nigeria to give customers a unique number that can be verified across the Nigerian banking industry. BVN helps to protect every bank customer’s information by assigning to their account a unique identification number. The Bank verification number uses bio-metrics. Which means, the BVN is unique to every individual with respect to their physiological or behavioral attribute with the use of fingerprint or thumbprint or electronic signature etc? This helps to strengthen any banking security system so as to protect individual account from fraudsters or against any fraudulent act from infringed third party.

BVNs are created through the use of biometric data capture machines, which rely on data such as fingerprints and facial recognition technology to establish for each customer “a unique identity across the Nigerian Banking industry for easy identification and verification.” The implementation of BVNs is a part of CBN’s Financial Sector Strategy (FSS) goal of helping the country become “one of the top 20 largest economies in the world by 2020.”

The role through which the BVN enhances the operations of the banking system in Nigeria is challenges that time will show it. This study therefore seeks to investigate the effect of  CBN policy on Bank Verification Number in improving the banking services in Nigeria using Enugu metropolise as a case study.


The broad objective of this study is to examine the effect of  CBN policy on Bank Verification Number in improving the banking services in Nigeria using Enugu metropolise as a case study. Specifies objectives are:

1.   To determine the significant effect of B.V.N on number of cheque clear in the country.

2.   To determine the extent B.VN policy has effected saving account in Nigeria.


The following research questions guided the study. The research objectives were distilled into six research questions as stated below.

1.   What is the significant effect of B.V.N on number of cheque clear in the country?

2.   What is the effect of BVN on saving account in Nigeria?


H0: BVN do not have significance effect on number of cheque clear.

H1:     BVN have significance effect on number of cheque clear.

H0: BVN policy has positive effect on saving account in Nigeria.

H2:     BVN policy does not have a positive effect on saving account in



The results from this study will be useful to various sector of the economy, particularly the financial sector and government policy makers. It will broader the literatures on economic implications of money laundering and future effect of BVN on economy growth.

Also it will help to identify advantages and disadvantages of BVN to the banks and customers.   It will show the impact of BVN policy on money launder and customer satisfaction.


The research topic is on the effect of BVN delivery of banking services in Enugu metropolise.

The limitation of the study among other things includes lack of data on BVN base on ground that it is new policy in Nigeria.  The behaviour of bank officers is another problem the researcher face in sourcing data.

a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study       

b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities


It is important to give a brief definition of the following key terms, in order to know the meaning of the key concept and some words in this research.

BVN: Bank Verification Number is a new policy created by Central Bank of Nigeria to control and protect bank account holders from unauthorized access.

Money Laundering: is the procedure by which the proceeds f illegal acts are converted into apparently legal activities thus concealing their criminal origin.

CBN: Central Bank of Nigeria, (CBN) is the apex bank in Nigeria, their duty is to regulate  financial institution in the country.

Commercial Bank: An iinstitution charged with the primary function of accepting deposits, granting business loan and advances, and offering other related services like issuance of letter of credit, bank drafts and FOREX trading among others.

Deposits /Savings: A deposit held with a bank in which the deposit is held for a fixed term or which requires notice for withdrawal, and where interest is paid.

Microfinance: Microfinance is generally defined as specialized financial tools, such as small loans, savings accounts and insurance policies, available to poor households and small businesses that do not typically have access to financial services.


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.




This research material is intended for academic use only and should be used as a guide in constructing your research project and seminar presentation. You should never duplicate the content word for word (verbatim), as SCHOOLTHESIS.COM will not be held liable for anyone who does.

The purpose of publishing this material is to alleviate the stress of hopping from one school library to the next in search of research materials. This service is lawful because all educational institutions allow students to read past projects, papers, books, and articles while working on their own.

SCHOOL THESIS is merely giving this information as a research reference. Use the document as a reference or structure for your own research paper. This paper’s content should be able to assist you in coming up with new ideas and thoughts for your own study

The Effect of Bvn in Delivering Bank in Nigeria (2005-2015)  research paper, should only be used as a guide.